At that time, I said, “New hepatitis C drugs and stabilization in market share for their leading HIV drug are expected to enhance future earnings; thus, GILD should be high on the list of biotech stocks in investors’ portfolios.”

Technically the stock is still in a clearly defined bull channel, but it has enhanced its potential by breaking through resistance at $64 from a “V” formation. My trading target had been $67, but Wednesday’s bullish breakout boosted my target to $72. The stock could also be positioned as a long-term hold with a 12-month target of over $80.